Craig Trbovich Commercial Real Estate –
I recently reported that leasing activity has continued its Slow Train uphill recovery, with up and down economic reports and mixed results. But investment activity has picked up steam as the fundamentals of the commercial real estate market continue to improve. Industrial properties have continued on the right track, pushing values toward all-time highs. And Office has finally entered the express line with early 2015 sales volume through April well on track to match peak levels of 2007!
Investment sale numbers for the Phoenix Market have been updated below with trailing 12 month average comparisons and a historical Average Sales Price per Square Foot and Annual Sales Volume chart for each product type.
Industrial Warehouse Investment Sales
Industrial warehouse investment sales continue to grow and expand as this sector enjoys continued robust growth, locally and nationally. Year over year sales price per square foot has increased 18% and sales dollar volume increased 16% as all metrics below show strong growth.
Industrial Warehouse Average Sales Price Per Square Foot
Industrial Warehouse Annual Sales Volume
Office Investment Sales
Office investment sales, until recently, have reflected lackluster interest from many investors as vacancies have continued to remain historically high. However, investors are now seeing a brighter future for the office market as job growth and economic recovery continue causing investors to feel more confident about continued improvement. A 50% increase in sales volume and 28% increase in sales prices per square foot demonstrate that new confidence in a big way.
Office Average Sales Price Per Square Foot
Office Annual Sales Volume
Retail Investment Sales
Retail is showing mixed results over the past twelve months with a nominal increase in sales prices and slight decline in sales volume. Sentiment at this week’s RECon in Las Vegas was positive, however.
Retail Average Sales Price Per Square Foot
Retail Annual Sales Volume
Source: CoStar Analytics, Investment Sales (non-distressed) Over 15,000 sf.
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